Employee Retention Credits – Does Your Small Business Qualify?
COVID-19 has proven to be a difficult task for all of us. As the globe shut down, the economy came to a standstill, putting many enterprises’ futures in jeopardy. Businesses must now concentrate on recovery as we return to routine, and luckily, various government initiatives are assisting in this process.
Qualifications for the ERC
While the broad prerequisites for the ERC program seem straightforward, the interpretation of each criterion is quite complicated. Because of our extensive expertise, we can guarantee that we optimize any credentials that may be accessible to your organization.
BUSINESS SUSPENSION, COMPLETE OR PARTIAL
A government agency mandated a partial or complete closure of your firm in 2020 or 2021. This includes your activities being hampered by trade, inability to travel, or group meeting constraints.
REDUCTION OF GROSS RECEIPTS
The gross receipt reduction requirements for 2020 and 2021 are different, however they are calculated against the current quarter as opposed to 2019 pre-COVID levels.
The Employee Retention Credit, or ERC, is one such initiative. It is a significant stimulus program aimed to help firms who were able to keep their workers through this difficult period. It is underused due to the exceedingly complicated tax legislation and prerequisites. The program’s specifics are as follows: